Reed's, Inc. Adds Additional Business Line and Expands Revenue Opportunities

Released:07/28/09 07:00 AM EDT

New Private Label Business Anticipated to Substantially Increase Revenues and Gross Profit

LOS ANGELES, CA -- (Marketwire) -- 07/28/09 -- Reed's,
Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food
stores nationwide, announced today that it has undertaken a new line of
business, utilizing its stream lined bottling operation to exploit
opportunities to private label products that are non-competitive to its
existing lines of business. The company anticipates that this new business
line will dramatically increase revenues and improve gross profit.

"We have increased efficiencies and created additional available line time
within our brewing and bottling operation," commented Mr. Chris Reed,
Founder and CEO of Reed's, Inc. "In essence, we've tooled up our plant to
a point where we have created about three to four thousand additional hours
a year of line time to dedicate to the private label business. This could
double the current size of our company."

Mr. Reed added, "Our initial outreach to the larger supermarket chains in
the US has been met with significant interest. Our plant has unique
packaging capabilities that, up until now, were only found outside North
America. This gives us a competitive edge when bidding these specialty
beverage products. We are not offering our proprietary formulas for private
label but, are instead, developing non-competing flavors."

"Upon full implementation, this new business should significantly increase
our revenues, and gross profit," continued Mr. Reed. "We are committed to
exploring every area of potential growth while pursuing the least dilution
for shareholders. The additional revenues and cash flow from this
initiative could self-fund our growth and brand development. We feel that
this new business should allow us to drive expanded marketing and awareness
of our brands."

About Reed's, Inc.

Reed's, Inc. makes the top-selling sodas sold in natural food markets
nationwide, and is currently selling in more than 10,500 supermarkets in
natural foods and mainstream. Its six award-winning non-alcoholic Ginger
Brews are unique in the beverage industry, being brewed, not manufactured
and using fresh ginger, spices and fruits in a brewing process that
predates commercial soft drinks. In addition, the Company owns the
top-selling root beer line in natural foods, the Virgil's Root Beer product
line, and the
top-selling cola line in natural foods, the China Cola product line. Other
product lines include Reed's Ginger Candies and Reed's Ginger Ice Creams.

Reed's products are sold through specialty gourmet and natural food stores,
mainstream supermarket chains, retail stores and restaurants nationwide,
and in Canada. For more information about Reed's, please visit the
company's website at: http://www.reedsgingerbrew.com
or call 800-99-REEDS.

Some portions of this press release, particularly those describing Reed's
goals and strategies, contain ''forward-looking statements.'' These
forward-looking statements can generally be identified as such because the
context of the statement will include words, such as ''expects,''
''should,'' ''believes,'' ''anticipates'' or words of similar import.
Similarly, statements that describe future plans, objectives or goals are
also
forward-looking statements. While Reed's is working to achieve those goals
and strategies, actual results could differ materially from those projected
in the forward-looking statements as a result of a number of risks and
uncertainties. These risks and uncertainties include difficulty in
marketing its products and services, maintaining and protecting brand
recognition, the need for significant capital, dependence on third party
distributors, dependence on third party brewers, increasing costs of fuel
and freight, protection of intellectual property, competition and other
factors, any of which could have an adverse effect on the business plans of
Reed's, its reputation in the industry or its expected financial return
from operations and results of operations. In light of significant risks
and uncertainties inherent in forward-looking statements included herein,
the inclusion of such statements should not be regarded as a representation
by Reed's that they will achieve such forward-looking statements. For
further details and a discussion of these and other risks and
uncertainties, please see our most recent reports on Form 10-KSB and Form
10-Q, as filed with the Securities and Exchange Commission, as they may be
amended from time to time. Reed's undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events, or otherwise.